Debt Solution Fees Explained
Our Services
MoneySave Solutions offers all-round debt advice and a full range of Debt Solutions for all UK legal
jurisdictions (i.e. England & Wales, Scotland and Northern Ireland), including Debt Management Plans
(DMPs), Individual Voluntary Arrangements (IVAs), Protected Trust Deeds (PTDs), Debt Arrangement
Schemes (DAS), Bankruptcy Assistance and Debt Relief Orders (DROs).
Alternatively, the Money Advice Service is a free and impartial service set up by the government. You can
contact them online at www.moneyadviceservice.org.uk/en/categories/debt-and-borrowing or by phone on
0300 330 2222. Calls cost no more than to a standard UK-wide number.
MoneySave’s service is designed to be highly personalised. Historically, nearly 30% of our clients are facing
legal action when they come to us and approximately 15% of our clients in a debt management plan have
arrears with priority creditors (e.g. Mortgage, rent, council tax, utilities). Please note that we do not
represent clients in court, though we assist with court paperwork.
Where applicable you may be referred to an alternative service provider, for example, a local competent
authority if a Debt Relief Order (DRO) is regarded as the best solution for your circumstances. Extreme
hardship cases may be referred to their local Citizens Advice Bureau (CAB) as part of our Client Charter in
dealing with vulnerable and severe hardship cases.
All fees that are associated with any debt solution that MoneySave recommends are totally transparent and
disclosed orally and in writing prior to any contractual agreement being made with you. Your preferences are
critical to the debt solution selected and affordability is a key criteria. We will discuss the availability of freeto-consumer services for some of these debt remedies and the role of the Money Advice Service.
All fees quoted below are applicable to new clients only at the time of enquiry
Bankruptcy Assistance
For clients in England & Wales, where Bankruptcy is agreed to be the best debt solution for you then we will
refer you directly to our chosen licensed Insolvency Practitioner, as we do not have an in-house Insolvency
Practitioner. We operate a panel of Insolvency Practitioners covering all legal jurisdictions and they are all
companies independent of MoneySave Solutions.
We can offer expert advice on:
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The bankruptcy process
The period of bankruptcy
The effects of bankruptcy, particularly on your employment and your assets
Bankruptcy Restriction Orders (BRO), where applicable
Our authorised subsidiary Atlantic Finance (UK) Limited will charge a fee of £250 per individual petitioning for
this service, which includes the time of the Insolvency Manager and our personnel in preparing the debtors
petition paperwork and arranging the court date, including use of the Court Desk if applicable. This fee
excludes prevailing court fees and deposits.
MoneySave Solutions is a trading style of Pentagon (UK) Ltd., registered in England & Wales
Registration No. 03267970 at 7 Franklin Court, Stannard Way, Priory Business Park, Bedford MK44 3JZ
Regulated by the Claims Management Regulator in respect of regulated claims management activities
Authorisation No. CRM 28968 I Authorised and regulated by the Financial Conduct Authority
MoneySave Solutions Fee Structure
From 6 April 2016, The Insolvency Service launched an on-line facility to become bankrupt without the need
to go to court. From 21 July 2016, the process costs £680 per individual and payment can be made by
instalments, which has historically been a barrier to many indebted consumers petitioning for their own
bankruptcy. We recommend taking advice before completing your application. The link below will provide
you with impartial information regarding the process and the alternatives to bankruptcy.
Link: https://www.gov.uk/bankruptcy
You will normally be discharged within 12 months of bankruptcy proceedings being concluded, though it is
increasingly common to have to continue making contributions to the Official Receiver for a further 2 years if
you have surplus disposable income through a formal payment arrangement.
Debt Management Plans (DMPs)
MoneySave Solutions provides regulated debt advice and if your preference following an assessment of all
the debt solutions available is a commercial Debt Management Plan then we will use the services of Atlantic
Finance (UK) Limited, trading as Atlantic Financial Management. Atlantic is also regulated by the Financial
Conduct Authority and a DEMSA member that is subject to the same code of conduct, approved by the
Trading Standards Institute (TSI).
The fees that are applicable to an Atlantic Debt Management Plan are detailed in the table below and the
Terms of Business that are associated with the Debt Management Agreement are available on our Debt
Management Plans webpage. Our current average debt level for a DMP client is just over £17,000 with 6
creditors.
DMP Fees
Atlantic does not charge a set-up fee for a Debt Management Plan.
Atlantic does charge a higher monthly management fee in the first 6 months of the plan because of the level
of work required to:
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negotiate with your creditors
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confirm your draft and final statement-of-affairs with you and your creditors
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commence payments to creditors in the first month of the plan
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ensure that your credit report is being properly updated
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issue monthly statements
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deal with any legal paperwork
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generally monitor progress and communicate the outcome of our negotiations
The monthly fee that we need to recover in the first 6 months is based upon the number of creditors Atlantic
is acting upon and the level of your disposable income. The monthly fee is reflected as a monetary amount.
The remainder is disbursed to your creditors from our client account within 5 business days of cleared
funds. If you elect to pay Atlantic more frequently than monthly (e.g. weekly) then Atlantic obtain your
consent to distribute to your creditors once a month on specified date agreed with your creditors.
MoneySave Solutions is a trading style of Pentagon (UK) Ltd., registered in England & Wales
Registration No. 03267970 at 7 Franklin Court, Stannard Way, Priory Business Park, Bedford MK44 3JZ
Regulated by the Claims Management Regulator in respect of regulated claims management activities
Authorisation No. CRM 28968 I Authorised and regulated by the Financial Conduct Authority
MoneySave Solutions Fee Structure
After the first 6 months, Atlantic charges a reduced monthly fee, again based upon the number of creditors
they are acting upon and the level of disposable income available. Total fee caps apply for the duration of
your Debt Management Plan with Atlantic. All fees and the estimated duration of your plan are disclosed
verbally and in writing. You are subject to an advised review at least annually.
In line with the Financial Conduct Authority (FCA) consumer credit sourcebook (CONC), Atlantic operates a
vulnerable client policy and a client will be assessed against this policy based upon the information obtained
in your financial review with our debt adviser. In order to ensure the suitability of the debt advice, this may
involve additional questions to establish whether a debt solution with Atlantic is the most appropriate advice.
Full & Final Settlement Services
Atlantic charges a fee of 10% of the difference between the actual balance and the negotiated balance upon
Full & Final Settlement of any of your credit agreements. A minimum fee of £25 per settled account applies.
Full & Final Settlement Services are typically used several years into a Debt Management Plan and creditors
will want to know the source of the funds.
Important points regarding DMPs
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Any fees applicable will be clearly explained before you commit to any Atlantic debt solution through a
written contract and you have a right to a 14 day cooling off period
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Whilst creditors are not obliged to freeze interest & charges, in over 96.5% (correct at June 2016) of
cases that MoneySave Solutions are acting upon, they have done so. Where a lender does not freeze
interest & charges the amount you owe and the period over which you repay that credit account may
increase, though requests to freeze interest & charges will continue once several payments have been
made to your DMP
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Whilst entering into a DMP can adversely affect your credit rating it is our experience that those who
approach us already have an impaired credit record. By entering into a DMP you will be showing your
creditors that you are taking a responsible attitude to resolving your financial problems and this could
help you in the future
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Rescheduling debts can sometimes lead to an increase in the total sum to be repaid and can extend the
debt repayment period, though our experience has shown that for revolving credit (e.g. credit cards),
where interest is frozen, that the opposite may be true in a DMP, with the repayment period being
substantially shorter when compared to minimum contractual repayments
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The pros and cons of a DMP can be reviewed in the document 'In debt? Dealing with your creditors‘.
More generally, Atlantic will make clear the actual or potential advantages, disadvantages, costs and
risks of each option available, with any conditions that apply for entry into each debt resolution option
and which debts may be covered by each option in the applicable legal jurisdiction (e.g. England, Wales,
Scotland, Northern Ireland)
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If you are unhappy with the service then you have the right to independent redress through the
Financial Ombudsman Service (FOS), which is explained in Atlantic’s complaint policy
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Any changes in circumstances, positive or negative, will be taken into account with regard to the
repayments offered to your creditors and the duration of your DMP.
MoneySave Solutions is a trading style of Pentagon (UK) Ltd., registered in England & Wales
Registration No. 03267970 at 7 Franklin Court, Stannard Way, Priory Business Park, Bedford MK44 3JZ
Regulated by the Claims Management Regulator in respect of regulated claims management activities
Authorisation No. CRM 28968 I Authorised and regulated by the Financial Conduct Authority
MoneySave Solutions Fee Structure
Individual Voluntary Arrangements (IVA)
For clients in England & Wales or Northern Ireland, where an IVA is agreed to be the best debt solution for
you then we will refer you directly to our chosen licensed Insolvency Practitioner, as we do not have an inhouse Insolvency Practitioner. We operate a panel of Insolvency Practitioners covering all legal jurisdictions
and they are all companies independent of MoneySave Solutions.
The MoneySave panel is:
The Insolvency Practitioner will typically request at least one monthly contribution from you prior to your
creditor meeting to show that the payment that you have agreed is affordable and to cover some of their
initial costs. This will be paid towards your Nominee Fee and will be the first of your 60 monthly
contributions (if it is a five year IVA). The only other fee which you should incur will be the supervisory fee in
their role of Nominee and Supervisor, respectively. For more information on IVAs then click here to access
the ‘In debt? Dealing with your creditors’ booklet that should be read by a prospective client before incurring
any fees.
We are paid a referral fee by the respective Insolvency Practitioner where the IVA is accepted. This is paid
from the Nominee Fee by the Insolvency Practitioner and there is no direct cost to you.
Nominee Fee
The nominee fee is a fixed fee and covers the Insolvency Practitioner's work in setting up your IVA proposal
to your creditors. The nominee fee charged by our Insolvency Practitioner is likely to be in the range of
£1,000 to £3,000, with an average of £1,200.
The Insolvency Practitioner will be paid the nominee fee out of the payments you make into the IVA and
these will not be paid to your creditors, so that your credit agreements that are part of the IVA will go into
further arrears. The creditors are bound by the IVA proposal once approved provided that you maintain
agreed payments to the Insolvency Practitioner.
It takes around 6 - 8 weeks to set up an IVA and during this period you will commence your monthly
contributions into your IVA. It is likely that by the time the IVA is approved, you will have made one to two
contributions which will be used as part payment of the nominee fee and count towards your total required
contributions.
Supervisor's Fee
The supervisor's fee covers the on-going administration of the IVA, disbursement of contributions to your
creditors and any reviews that are required, including an annual review. The supervisor has reasonable
MoneySave Solutions is a trading style of Pentagon (UK) Ltd., registered in England & Wales
Registration No. 03267970 at 7 Franklin Court, Stannard Way, Priory Business Park, Bedford MK44 3JZ
Regulated by the Claims Management Regulator in respect of regulated claims management activities
Authorisation No. CRM 28968 I Authorised and regulated by the Financial Conduct Authority
MoneySave Solutions Fee Structure
discretion where your circumstances change without going back to your creditors and this may affect the
contributions and fees.
The calculation of the supervisor’s costs and fees will depend on the proposal and is therefore subject to your
individual circumstances. Wherever possible our Insolvency Practitioner's follows the IVA Protocol, an agreed
approach with the major lenders, where the supervisor’s fee will usually be 15% of your monthly or quarterly
payment.
For employed or retired people it will be normal for contributions to be made monthly. For the self-employed
there may be flexibility in payments to allow for invoice payments by their customers. Your creditors will
agree these supervisory fees with the Insolvency Practitioner and they will be deducted from the money you
pay the Insolvency Practitioner for distribution to your creditors. Where you are a homeowner, there may be
a requirement to make contributions for a sixth year rather than release equity from your property. A
supervisor fee will be applicable on any contributions in the extended term of the IVA.
If your IVA fails
If your IVA fails, meaning your Insolvency Practitioner formally defaults the IVA, then you will remain liable
for the balance of your debt and any Insolvency Practitioner fees and costs already incurred.
IVA Illustration
Employed tenant who is married with no dependents and in their late thirties with total unsecured debts of
£18,927 with 7 creditors and their liabilities exceed assets.
Monthly contributions 60 months @ £220 (Disposable Income) = £13,200
The Insolvency Practitioner (IP) fees come from these monthly contributions and are therefore suffered by
the creditors not the client.
Nominee Fee
Supervisor Fee over IVA term
Disbursements / Costs
Total Costs
Net funds available to 7 creditors
Dividend to unsecured creditors
= £1,100 (5 x £220)
= £1,815 [15% of the remainder (£12,100)]
= £500
from IVA
£3,415
£9,785
51.7p in the £
From bankruptcy:
Assumptions of 36 contributions of £220 = £7,920 and minimum IP fees of £4,000.
Dividend to unsecured creditors from bankruptcy
MoneySave Solutions is a trading style of Pentagon (UK) Ltd., registered in England & Wales
Registration No. 03267970 at 7 Franklin Court, Stannard Way, Priory Business Park, Bedford MK44 3JZ
Regulated by the Claims Management Regulator in respect of regulated claims management activities
Authorisation No. CRM 28968 I Authorised and regulated by the Financial Conduct Authority
21p in the £
MoneySave Solutions Fee Structure
Protected Trust Deeds (PTD)
For clients in Scotland, where a Protected Trust Deed (PTD) is agreed to be the best debt solution for you
then we will refer you directly to our chosen licensed Insolvency Practitioner, who will act as Trustee, as we
do not have an in-house Insolvency Practitioner covering Scotland. We operate a panel of Insolvency
Practitioners in this legal jurisdiction and they are all companies independent of MoneySave and are
members of the Insolvency Practitioners Association (IPA) or the Institute of Chartered Accountants Scotland
(ICAS).
MoneySave charge no fees for the initial regional adviser meeting and our licensed adviser then acts as an
agent to the nominated Insolvency Practitioner, in their capacity as Trustee. Any Fees that we are paid as the
agent of the Trustee will be disclosed in the Protected Trust Deed proposal and will be collected from
contributions to your Protected Trust Deed. Any work we undertake is auditable by the Insolvency
Practitioner and the Scottish Account in Bankruptcy.
The fee the Trustee will charge will depend on your individual circumstances, but the average charge is
between £2,500 and £5,000 plus VAT. Your Trustee will be paid before any money is made available to repay
your creditors, though your creditors are bound by the Trust Deed once it becomes 'Protected'.
Click for more information on Protected Trust Deeds.
If your PTD fails
If your PTD fails then you will remain liable for the balance of your debt and any Insolvency Practitioner fees
and costs already incurred.
Debt Arrangement Schemes (DAS)
For clients in Scotland, DAS is debt remedy operated by the Scottish government that allows you to
repay your unsecured debts through a Debt Payment Programme (DPP). This allows you to pay off your debts
over an extended period of time while giving you protection from your creditors taking action against you to
recover the debts listed in the DPP. The DPP can last for any reasonable length of time and, if approved, will
freeze all interest, fees and charges on the debts included, resulting in them being written off if you fully
complete the DPP.
MoneySave charge no fees for the initial regional adviser meeting and we would refer you to our preferred
DAS approved money adviser, who will provide additional debt advice and apply for a DPP on your behalf.
Thomson Cooper is our preferred DAS approved money adviser.
Click for more information on DAS.
Last updated: July 2016
MoneySave Solutions is a trading style of Pentagon (UK) Ltd., registered in England & Wales
Registration No. 03267970 at 7 Franklin Court, Stannard Way, Priory Business Park, Bedford MK44 3JZ
Regulated by the Claims Management Regulator in respect of regulated claims management activities
Authorisation No. CRM 28968 I Authorised and regulated by the Financial Conduct Authority